Poorly drafted guarantor agreements are regularly held unenforceable by courts. Common problems include: guarantee obligations that are tied to a fixed-term that no longer exists; failure to ensure the guarantor received independent legal advice; guarantees that are not executed as a deed; and guarantees that do not clearly extend to a statutory periodic tenancy.
With all new tenancies now being Periodic Assured Tenancies from 1 May 2026, every guarantor agreement signed for a new tenancy must be drafted to cover an indefinite periodic tenancy with no fixed end date — not a 12-month fixed term.
What is a guarantor agreement?
A guarantor agreement (also called a deed of guarantee) is a separate legal document — or a clause in the tenancy agreement — by which a third party (the guarantor) agrees to be liable for the tenant's obligations under the tenancy:
- The guarantor is jointly and severally liable for unpaid rent and any tenant-caused damage to the property
- The landlord can pursue the guarantor directly without first exhausting remedies against the tenant
- A guarantor agreement is a contract: it must be supported by consideration (the granting of the tenancy is sufficient) or executed as a deed
- For it to be binding, the guarantor must understand what they are signing — the court will scrutinise undue influence and unconscionable conduct
- Guarantor agreements should always be separate deeds, signed and witnessed, rather than a clause buried in the tenancy agreement
What a guarantor agreement must include (2026)
A guarantor agreement that will be enforceable post-Renters' Rights Act must contain all of the following:
- Parties: Full legal names and addresses of the landlord, tenant, and guarantor
- Property address: The full postal address of the let property
- Scope of the guarantee: Expressly covers both rent arrears and any damage beyond fair wear and tear
- Periodic tenancy coverage: Expressly extends to the Periodic Assured Tenancy and any continuation — not just a named fixed term
- Cap (optional): Some agreements cap the guarantor's liability at a fixed sum (e.g. 6 months' rent) — make this express
- Termination: The agreement should state when the guarantee ends — typically when the tenancy ends and all sums are settled, not on a fixed date
- Independent legal advice: Include a declaration that the guarantor has had the opportunity to take independent legal advice
- Execution as a deed: The guarantor must sign in the presence of a witness who also signs; the document must be labelled 'deed' — guarantees not executed as deeds may be unenforceable without consideration
Independent legal advice — why it matters
While there is no strict legal requirement for a guarantor to take independent legal advice (ILA) before signing, its absence significantly increases the risk that the guarantee will be set aside:
- If the guarantor later claims they did not understand what they were signing, or were pressured into signing by the tenant, a court may find undue influence and void the guarantee
- Requiring ILA or at minimum giving the guarantor the opportunity to take it (documented in the agreement) provides a strong defence against undue influence claims
- For high-value guarantees (e.g. where the property is a high-rent professional let), ILA from a solicitor is strongly recommended
- A simple declaration clause — 'I confirm I have read this deed, understood its terms, and have had the opportunity to take independent legal advice' — signed by the guarantor significantly strengthens enforceability
The Renters' Rights Act 2025 and periodic tenancy guarantees
From 1 May 2026, all new tenancies in England are Periodic Assured Tenancies — there is no fixed end date. This changes how guarantor agreements must be drafted:
- Old-style guarantor agreements that reference 'the AST dated [date] for a term of 12 months' are ambiguous once the tenancy becomes periodic
- Courts have held that guarantees tied to a fixed term expire when the fixed term does and do not automatically extend to the periodic tenancy — Superstrike Ltd v Rodrigues [2013] is the key case
- New guarantor agreements must expressly state that the guarantee covers the Periodic Assured Tenancy 'for as long as the tenancy continues, including any continuation, statutory or contractual'
- Guarantee provisions should not reference fixed-term end dates — there are none in PAT tenancies
- If you have existing guarantor agreements from before May 2026 that reference a fixed-term AST, consider whether they need to be updated for the continuing periodic tenancy
Enforcing a guarantor agreement
When a tenant defaults on rent or causes damage, the process for pursuing the guarantor is:
- Step 1: Establish the debt — calculate the total arrears or agreed cost of damage, with evidence (rent statements, check-out report, invoice for repairs)
- Step 2: Write to the guarantor formally demanding payment, specifying the amount and payment deadline — keep a copy and proof of delivery
- Step 3: If the guarantor does not pay, issue a claim in the County Court (online via Money Claim Online for claims under £10,000, or County Court Business Centre for larger sums)
- Step 4: Obtain a County Court Judgment (CCJ) — enforce via attachment of earnings, charging order on the guarantor's property, or High Court Enforcement Officers for larger sums
- The guarantor cannot raise the tenant's personal circumstances as a defence — the guarantee is an independent obligation
- A guarantor who has paid the landlord can then seek recovery from the tenant under the right of indemnity
Alternatives to a personal guarantor
Where a suitable personal guarantor is not available, landlords can consider:
- Rent guarantee insurance: A policy that pays out if the tenant falls into arrears — covers both the rent and legal costs of possession. Premiums typically £150–£350 per year depending on rent level
- Deposit replacement schemes: Products like flatfair or Reposit replace the deposit with an insurance-backed commitment — though they do not cover arrears as comprehensively as RGI
- Higher holding deposit: Not permitted under the Tenant Fees Act 2019 beyond 1 week's rent for the holding period
- Rent in advance: Requesting more than 1 month's rent in advance is not prohibited by the Tenant Fees Act 2019 (only if the landlord does not use it as a mechanism to circumvent the deposit cap) — check the current guidance
- Guarantor companies: Companies (e.g. Housing Hand, Canopy) that act as professional guarantors for a fee paid by the tenant
Frequently asked questions
Does a guarantor agreement need to be a deed?+
A guarantor agreement should be executed as a deed — signed by the guarantor in the presence of a witness who also signs, with the document clearly labelled 'deed'. While a guarantee supported by consideration (the granting of the tenancy) may be enforceable as a simple contract, executing as a deed removes any argument about consideration and is best practice.
Can a guarantor be chased if the tenant is still in the property?+
Yes — the guarantor's liability is independent of the tenant's. As soon as rent is unpaid (or damage has been caused), the landlord can demand payment from the guarantor without first pursuing the tenant. In practice, it is sensible to notify the tenant of the arrears first and give a short period to remedy before involving the guarantor.
Does a guarantor agreement automatically cover a periodic tenancy?+
Only if it expressly says so. Guarantor agreements that reference only a named fixed-term AST have been held by courts not to extend to the statutory periodic tenancy. Post-May 2026, all new guarantor agreements should expressly state they cover the Periodic Assured Tenancy 'for as long as the tenancy continues in any form'.
Can I require a guarantor from every tenant?+
You can ask for a guarantor as part of your tenancy application criteria, but you cannot discriminate unlawfully in how you apply this requirement — applying a guarantor requirement only to tenants in receipt of Universal Credit (or other protected characteristics) could constitute indirect discrimination under the Equality Act 2010. Apply the requirement consistently based on objective referencing criteria.
What happens to the guarantor agreement if the rent increases?+
If the guarantee is a fixed sum (e.g. 'up to 6 months' rent'), a rent increase under Section 13 does not automatically increase the guarantor's maximum liability. If the guarantee is expressed as 'all rent due under the tenancy', the guarantor is liable for the new rent from the effective date of the Section 13 notice. Make sure the guarantee terms are clear on this point.